Companies run by Batista, 56, owe BTG about 650 million
reais ($286 million), according to a person with direct
knowledge of the matter. The bank canceled a credit line of $1
billion that was part of the March agreement with Batista, the
person said, asking not to be identified because the matter
hasn’t been made public. The person didn’t say when the decision
to withdraw the line was made. Batista used shares of his
publicly traded companies, all of which end in the letter “X,”
as collateral for a portion of the loans, the people said. OGX
shares sank 91 percent this year before today.

“The market is concerned with banks’ exposure to ‘X’
companies, but it’s necessary to determine what the exposures
are given each bank’s size,” Eduardo Carlier, a fund manager at
the Brazilian unit of London-based Schroders Plc, said in a
telephone interview. “Because BTG has a smaller market value
than the others, it tends to suffer more than other banks.”

Itau’s Exposure

Itau Unibanco Holding SA, Brazil’s biggest bank by market
value, has about 1.24 billion reais at risk in companies linked
to Batista, or 1.4 percent of regulatory capital, Alessandro Arlant, an analyst at Bank of America Corp., wrote in a report
this week.

Before today, BTG shares posted a 26 percent drop since the
March 6 deal with Batista’s EBX Group Co., OGX’s parent. That
compares with a 17 percent decline in the same period for Itau
and 18 percent for Banco Bradesco SA, Brazil’s second-biggest
bank by market value.

Esteves’s fortune of $4.85 billion in March sank to $3.55
billion, data compiled by Bloomberg show. Batista’s wealth fell
more than $30 billion since March 2012, and last month he
dropped from the list of the world’s 200 richest people,
according to the Bloomberg Billionaires Index.